California Gov. Gavin Newsom signed the fiscal year (FY) 2022-23 state budget on June 27, ending the budget process marked by a record $97.5 billion surplus to close.
The Administration and the Legislature made a number of investments in critical affordable housing programs this year, which will support the production of new affordable homes for low-income households. We extend our appreciation to our state leaders for continuing to dedicate funds to meet the urgent housing needs of Californians.
However, with a severe and worsening housing and homelessness crisis facing our state and a historic budget, this year’s budget fell short of investing at the scale of the need. Enterprise’s own analysis identified that an investment of $4 billion into the Housing Accelerator Fund alone would have been able to move forward at least 14,000 shovel-ready affordable homes across the state; only $250 million were allocated to this program.
Although it was included in the Legislature’s budget framework, the final budget also failed to include funding for the acquisition and preservation of unsubsidized affordable housing, which Enterprise and partners championed this year through the Community Anti-Displacement and Preservation Program (CAPP). These priority programs will continue to be a focus for Enterprise next year.
The final budget allocates about $2 billion for housing and $3.4 billion for homelessness over the next two fiscal years and includes the following highlights:
- $500 million in state low-income housing tax credit program for the 2023 calendar year
- $335 million for the Multifamily Housing Program ($100 million for FY 2022-23 and $225 million for FY 2023-24)
- $250 million for the Housing Accelerator Program
- $425 million for the Infill Infrastructure Grant Program ($200 million in FY 2022-23, $225 million in FY 2023-24)
- $150 million for the Portfolio Reinvestment Program to preserve existing affordable homes ($50 million in FY 2022-23, $100 million in FY 2023-24)
- $410 million for Adaptive Reuse ($200 million in FY 2022-23 and $250 million in FY 2023-24)
- $100 million for the Manufactured Housing Opportunity and Revitalization Program ($25 million in FY 2022-23, $75 million in FY 2023-24)
- $100 million for State Excess Sites Developments ($25 million in FY 2022-23 and $75 million in FY 2023-24)
- $500 million for the California Dream for All Program
- $700 million for Infill Infrastructure Grant ($300 million for FY 2022-23 and $400 million for FY 2023-24)
- $1 billion for the Homeless Housing, Assistance, and Prevention Program
- $1.5 billion for Behavioral Health Bridge Housing over two years
We remain steadfast in our commitment to advocating for more resources to address the housing needs of low-income Californians across the state. We look forward to continuing working with our partners, the Legislature and the Administration in ensuring that housing is prioritized, with significant investments to match in the coming years.